china has a very large holding in US sub prime, equitiies and US government treasury bonds. Almost 1.5 trillion US$ worth, thats why china is worried about the GFC as it will heavily devalue their values in holding
That said by surging internal grwoth they offset some US weakness and still have to find the raw materials good for australia.
Might do more than the rudd stimulus package or combine that and lower rates and again we come out of it better than before due to our open economy.
We might be suffering but a export lead recovery with china surging ahead again will push employment back into the growth range.
They will also buy US exports their total cash holdigns might drop but if china starts to buy from US europe and abroad exporters in these countries will help drive a recovery.
